News about inflation
Turkish resorts are forced to cut prices and launch large-scale discount offers amid a noticeable drop in tourist demand. Hoteliers are trying in this way to keep the load at the peak of the season, while, according to market participants, the country may lose about 8-10 million dollars daily due to the reduction in tourist traffic.
Moldova will increase by 150 million euros the loan from the European Bank for Reconstruction and Development (EBRD) for the implementation of the V Road Rehabilitation Project, bringing the total amount of financing to 300 million euros. The decision is due to the increase in prices for construction materials and labor.
The indicator significantly exceeded the ECB’s target of 2%. The main reason was energy price inflation, which rose by 10.9% year-on-year. The preliminary data paves the way for an ECB interest rate hike at next week’s meeting. Before the conflict in Iran, inflation in the eurozone was below 2%.
Gold prices declined on Monday, June 1, amid the escalation of the conflict between the United States and Iran. Investors preferred to focus not on geopolitical risks, but on the consequences of rising oil prices, which may push the U.S. Federal Reserve to maintain high interest rates.
Turkey’s economy slowed in the first quarter. The central bank tightened monetary policy to reduce risks associated with the conflict with Iran. The shock caused volatility in the energy market and complicated the Turkish central bank’s efforts to curb inflation. Turkey imports a significant amount of oil and natural gas, making its economy particularly sensitive to changes in global energy prices.
Food inflation in Europe has slowed sharply, but for consumers this has made little difference: prices remain well above pre-pandemic levels. The reason is simple – inflation is slowing, but price hikes are not rolling back.
The debate about whether the orthodox methodology of central banks’ containment of inflationary pressures should be followed in view of the “hard times” in the world is heating up with renewed vigor. Experts are questioning whether the role of money should be given so much importance and when it should be done. And what is more important here – canons or common sense.
Bitcoin rebounded to levels near $74,000 on Friday after falling to a near seven-week low in the previous session. Reports that the U.S. and Iran are close to extending a ceasefire agreement helped improve appetite for riskier assets.
A Federal Reserve (Fed) spokesman cautions against viewing the oil shock as temporary, believing that policy tightening is possible if inflationary pressures do not abate. This could include not only a change in interest rates, but also a review of the Fed’s use of the balance sheet.
Global energy inflation will be delayed for a longer period of time due to the conflict in the Middle East and supply disruptions. Experts forecast that high oil and gas prices will act as a driver of overall price growth and stagflationary processes until at least the end of 2027.
European Central Bank President Christine Lagarde said the independence of the U.S. Federal Reserve remains in jeopardy and requires support from voters and lawmakers.
International rating agency Fitch Ratings forecasts Moldova’s GDP growth in 2026-2027 at an average of 3%, given improving external reserve buffers and the authorities’ macroeconomic policies, which mitigate the risks of energy shocks, the agency said in a commentary published on Tuesday after Chisinau agreed a non-financial cooperation program with the IMF.
Wheat futures are down for the longest period this year. Traders returning from a long weekend in the U.S. are “wagering” on news of “progress in negotiations” in the Middle East.
China is cutting the interest rate on consumer loans to a record low to stimulate the economy. The reduction in borrowing costs comes amid signs that the Chinese economy is slowing after a strong first quarter. Growth slowed across the board in April and the People’s Bank of China (MLF) went for a further cut in May. In May, some banks borrowed under the People’s Bank’s annual medium-term lending facility at a rate of just 1.45%, down 0.05 percentage points from April.
The case of importing Brazilian chicken to Israel has taken an unexpected turn. The country’s chicken meat market remains closed to foreign products, and Baladi’s attempt to obtain permission to import chicken meat from Brazil, from where Israel has been importing beef for many years, has met with stiff resistance from local producers.
Official inflation in Moldova in annualized terms in April 2026 amounted to 6.8%. In the previous month it was 5.8%. So the April growth was the most significant since December 2025.
Prices may increase by 10% by the end of the year. This was pointed out by the Minister of Economic Development and Digitalization, Eugeniu Osmochescu. According to him, petrol and diesel will be followed by an inevitable rise in the prices of everyday products and services.
On Friday, investment bank JPMorgan warned that Turkey’s central bank is likely to raise its key interest rate to 40%. The increase could come before the next scheduled meeting in June, given the current market volatility caused by political factors.
The European Commission said Thursday it has sharply lowered its forecast for Romania’s economic growth in 2026 to 0.1 percent from 1.1 percent projected last fall.
The Agency for Competition and Consumer Protection of Georgia announces its intention to create a unified information platform for monitoring the Family Basket program.
